Mixed results for contracting groups

Contractors Georgiou Group, Ertech and Piacentini & Son have delivered a mixed bag of profit results in the 2018-19 financial year, with Ertech and Piacentini recording large improvements and Georgiou performing below expectations.

Ertech, the largest of the three firms with more than 1,100 employees, rebounded from an $11 million loss in FY2018 to turn an $8.6 million profit in FY2019, as its revenue increased by more than $120 million to $434 million.

Documents lodged with the Australian Securities and Investments Commission show that in Western Australia, Ertech’s revenue increased from $174 million in FY2018 to $220 million in FY2019, as the contractor’s earnings rose in each state of operation across Australia.

Flagship projects included the $15 million redevelopment of Rockingham Foreshore and a $120 million NSW roads joint venture with Georgiou.

Earthmoving and mining contractor Piacentini & Son doubled its profit in FY2019, while it also recorded a $100 million-plus lift in revenue.

The company’s annual report showed a net profit of $4 million, while its revenue rose from $209 million in FY2018 to $323 million last financial year.

Meanwhile, Georgiou Group said it was expecting a rebound in FY2020 after its revenue was hit in FY2019 by delays in project awards from government and private sector clients.

Revenue came in at $487 million, down from $574 million in the year prior, while Georgiou’s net profit was $2.7 million, down from $3.5 million in FY2018.

The company said it had delivered on expectations in regards to project margins, however, margins in its Western Australian business units were below expectations.

Chairman John Georgiou said he expected a significant rebound in FY2020, with the company having been shortlisted on several large scale infrastructure projects, including Metronet works in WA.

“Across our operations, our tendering pipeline has increased significantly across all market segments with the exception of the WA residential market,” Mr Georgiou said.

“Tender opportunities in the transport sectors (both road and rail) have increased significantly and provided the opportunity for the company to select projects which better suit our resources and capabilities.” 

Mr Georgiou said while FY2019 performance was below the company’s expectations, recent project awards would deliver an improvement in financial results in FY2020.